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Bitcoin stabilized on Wednesday, finding its footing after a turbulent few sessions marked by a clash of forces — renewed U.S.-China trade tensions and growing market conviction that the Federal Reserve will cut interest rates in October.
Volatility Persists Amid Trade Uncertainty
The world’s largest cryptocurrency was last down 0.2% at $112,292.5 by 05:30 GMT, having rebounded from a steep selloff that saw prices plunge as low as $109,000 on Tuesday. The coin remains far below its recent record high above $126,000, highlighting how fragile sentiment remains amid macro headwinds.
Resurgent tensions between Washington and Beijing have been the main driver of recent volatility. Bitcoin dropped as much as $103,000 in a weekend flash crash after President Donald Trump vowed to expand tariffs on Chinese imports. While the market recovered some ground, investors remained cautious about further escalation in trade disputes that could weigh on global risk assets.
Dovish Powell Offers Some Support
Sentiment was partially cushioned by remarks from Fed Chair Jerome Powell, who hinted on Tuesday that the central bank may end its balance sheet reduction program (quantitative tightening) and adopt a more flexible approach to monetary policy.
Powell’s dovish tone fueled speculation that the Fed will deliver a 25-basis-point rate cut in October, with CME FedWatch showing odds at 99.6%, up from 97.4% a week earlier. Lower interest rates tend to benefit non-yielding and speculative assets like Bitcoin by reducing the opportunity cost of holding them.
Coinbase Expands in India Through CoinDCX Investment
In corporate news, Coinbase Global Inc (NASDAQ: COIN) announced an additional investment in Indian crypto exchange CoinDCX, valuing the company at $2.45 billion—well above the sub-$1 billion valuation reported earlier this year.
The move highlights Coinbase’s strategy to strengthen its presence in India and the Middle East, regions where crypto adoption continues to surge. CoinDCX confirmed the new funding round and emphasized that Coinbase has been an investor since 2020.
India currently leads global crypto adoption, with over 100 million holders as of end-2024, making it a key growth market for international exchanges.
Altcoins Rebound on Improved Sentiment
Broader crypto markets showed mixed but slightly positive momentum on Wednesday, aided by Powell’s comments and modest improvement in risk appetite.
- Ethereum (ETH) rose 1% to $4,111.32, recovering from early-week declines.
- XRP slipped 0.2% to $2.5016, while Solana and Cardano gained 2.4% and 0.4%, respectively.
- Binance Coin (BNB) fell 3.5%, extending recent weakness.
- Among meme coins, Dogecoin and $TRUMP each added 0.5%.
Outlook
Bitcoin remains in a tug-of-war between macro uncertainty and dovish policy expectations. Analysts note that sustained buying may depend on confirmation of a Fed rate cut and any signs of de-escalation in U.S.-China tensions. Until then, price volatility is likely to remain elevated, with traders eyeing $110,000 as key short-term support and $115,000–$118,000 as the next resistance zone.
